Many recipients of student loans face daunting debt and may experience difficulty paying on their student loans. To handle disputes between borrowers and lenders, many student loan programs have implemented ombudsmen programs. These ombudsmen help to mediate disputes between the parties and potentially negotiate a solution. The mediator does not have the authority to change a payment plan or enforce a resolution on the parties. Instead, he or she tries to get the parties to reach an agreement on their own terms.

Role of Mediator or Ombudsman

The mediator or ombudsman is a neutral third party that serves as a middleman between the borrower and lender. He or she does not work directly for either party. He or she is not an advocate for either party. Instead, he or she uses special conflict resolution skills to help the parties improve their communication. He or she can explain the law to the parties and point out weaknesses in each side’s case. This information can help motivate the parties to resolve their differences.

Benefits of Using Student Loan Mediation

Mediation may be able to bring about positive results in the dispute and potentially avoid default. They may be able to correct mistakes and broker compromises between the parties. The mediator may be able to make recommendations that provide relief for the borrower. He or she may recommend a compromise that serves the interests of both parties, such as suggesting consolidation or repayment plans, filing for loan cancellation or correcting a mistake with a borrower’s credit.

Tips for a Successful Resolution

Before getting started with student loan mediation, it is important to have clear and realistic expectations. It is best if you can clearly identify the problem so that the mediator can spend time trying to find solutions to the problem you assert rather than spending the time to see where things went wrong.